European travel group TUI raised its annual earnings guidance on Tuesday, based on strong results for the first nine months of its financial year and positive signs for July.
Shares in the German company, which warned in May that 2025 could be a challenging year, were up 1.6% around 1445 GMT after it flagged a "record" performance at its Hotels & Resorts and Cruises businesses in the nine months to June 30.
TUI, Europe's largest tour operator, is due to report preliminary third-quarter results on Wednesday. In Tuesday's announcement, it said operating profit for the nine months to June 30 was 199 million euros ($232 million) at constant currencies.
The summer travel season is crucial for airlines and tourist businesses, with many operators making up for losses earlier in the year in the peak holiday months.
In May, TUI had flagged a dip in summer bookings, hitting its shares, and CEO Sebastian Ebel had warned of a potentially challenging year given Germany's ongoing economic struggles.
TUI now expects underlying earnings before interest and tax for the year ending September 30 to rise by between 9% and 11% year-on-year, up from a previous range of 7%-10%, though revenue growth is seen at the lower end of a forecast range of 5-10%.
TUI has sought to diversify its income, expanding in Asia and central Europe, in an effort to bring in new streams of revenue.
